(Bloomberg) -- European stocks ceded an earlier advance on Monday, as gains at Novo Nordisk A/S and Unicredit SpA were offset by disappointing company earnings and comments from Federal Reserve Chair Jerome Powell, who doused hopes of a March interest rate cut.

The Stoxx 600 Index gave up earlier gains to fall 0.1% at the close in London. The food, beverages and tobacco sector rose alongside health care, while retail and basic resources stocks underperformed. Among individual gainers, UniCredit soared to eight-year highs after forecast-beating results and an €8.6 billion shareholder-return announcement. Drugmaker Novo Nordisk hit a fresh record after announcing a deal to acquire three manufacturing sites for $11 billion.

On the losing side were Nordea Bank Abp, which missed estimates and Vodafone Group Plc after it posted revenue headwinds posed by cable television regulation in Germany and the failed merger of its Italian business.

Delivery Hero SE rose, recovering earlier losses, as investors were reassured by its results, released early to assuage concerns about its Asian deal. 

European stocks finished last week largely flat as central bankers pushed back against swift rate-cut bets. Pricing for the chances of a March Fed rate cut has fallen to around 18%, from about 48% early last week, while bets for a May cut are at 61%. 

“The resilience being seen in equity markets, particularly in the US, is surprising given that central banks are signaling that the prospect of early rate cuts is going to have to wait until later in the year, with the last few days forcing a major rethink on the timing of such a move,” said Michael Hewson, chief market analyst at CMC Markets UK.

Among other single stocks, IT firm Atos SE slumped on news it’s seeking a court-appointed mediator to assist in refinancing discussions. Stellantis NV also fell after chairman John Elkann said there’s “no plan” concerning merger operations with other competitors. MorphoSys AG surged after a report that Novartis AG is in advanced talks to buy the German maker of cancer treatments.

Investors are gearing up for a busy earnings week with UBS Group AG set to post results on Tuesday and wind-energy giant Orsted A/S expected to pitch its strategic plan to investors on Wednesday. 

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--With assistance from Michael Msika.

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